Regulatory Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2021

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory Assets Included on the Consolidated Balance Sheets

	March 31,		December 31,
(in millions)	2021		2020
Current:
Regulatory balancing and memorandum accounts	$	1,390	$	1,127
Power contracts		166		165
Other		22		22
Total current		1,578		1,314
Long-term:
Deferred income taxes, net of liabilities		4,526		4,475
Pension and other postretirement benefits		8		12
Power contracts		221		239
Unamortized investments, net of accumulated amortization		112		114
Unamortized loss on reacquired debt		130		133
Regulatory balancing and memorandum accounts		1,815		1,794
Environmental remediation		265		247
Recovery assets1		331		—
Other		135		106
Total long-term		7,543		7,120
Total regulatory assets	$	9,121	$	8,434

1 Represents the balance associated with the AB 1054 Excluded Capital Expenditures related Recovery Properties and prudently incurred financing costs securitized in 2021 with issuance of the associated bond. The recovery period is until 2043, when the bonds are paid in full and all financing costs have been recovered. For further details, see Note 3.

Regulatory Liabilities Included on the Consolidated Balance Sheets

	March 31,		December 31,
(in millions)	2021		2020
Current:
Regulatory balancing and memorandum accounts	$	427	$	471
Energy derivatives		84		87
Other		13		11
Total current		524		569
Long-term:
Cost of removal		2,727		2,595
Re-measurement of deferred taxes		2,256		2,283
Recoveries in excess of ARO liabilities1		1,901		1,930
Regulatory balancing and memorandum accounts		1,279		1,062
Other postretirement benefits		673		671
Other		45		48
Total long-term		8,881		8,589
Total regulatory liabilities	$	9,405	$	9,158

1 Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of SCE’s nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 10 for further discussion.

Schedule of Regulatory Balancing Accounts

	March 31,		December 31,
(in millions)	2021		2020
Asset (liability)
Energy resource recovery account	$	(133)	$	(89)
Portfolio allocation balancing account		437		497
New system generation balancing account		(6)		(10)
Public purpose programs and energy efficiency programs		(1,192)		(1,130)
Base revenue requirement balancing account		662		622
Greenhouse gas auction revenue and low carbon fuel standard revenue		(121)		(125)
FERC balancing accounts		12		12
Wildfire and drought restoration accounts1		397		361
Wildfire-related memorandum accounts2		1,142		1,104
COVID-19-related memorandum accounts		87		176
Customer service re-platform memorandum account3		37		30
Residential uncollectibles balancing account4		129		—
Other		48		(60)
Asset	$	1,499	$	1,388

1 The wildfire and drought restoration accounts regulatory assets represent restorative costs that are recorded in a Catastrophic Event Memorandum Account ("CEMA").

2 The wildfire-related memorandum accounts regulatory assets represent wildfire-related costs that are probable of future recovery from customers, subject to a reasonableness review. The Fire Hazard Prevention Memorandum Account ("FHPMA") is used to track costs related to fire safety and to implement fire prevention corrective action measures in extreme and very high fire threat areas. The Wildfire Expense Memorandum Account ("WEMA") is used to track incremental wildfire insurance costs and uninsured wildfire-related financing, legal and claims costs. During 2019, the CPUC approved a Wildfire Mitigation Plan memorandum account to track costs incurred to implement SCE's Wildfire Mitigation Plan that are not currently reflected in SCE's revenue requirements, a Grid Safety and Resiliency Program Memorandum Account ("GSRPMA") to track the costs of SCE's GS&RP that are incremental to costs approved for recovery in SCE's 2018 GRC and a fire risk mitigation memorandum account to track costs related to the reduction of fire risk that are incremental to costs approved for recovery in SCE's 2018 GRC that are not tracked in any other wildfire-related memorandum account.

3 CSRP memorandum account was established in the 2018 GRC to track costs for implementation of a new customer service system not currently reflected in SCE's revenue requirements.

4 In November 2020, the CPUC approved the establishment of the residential uncollectibles balancing account ("RUBA"), to track the difference (positive or negative) between the recorded uncollectibles expense for all customer groups and the total authorized uncollectibles revenue collected from all customers subject to a cap equal to the actual recorded uncollectibles expense for residential customers.